How Can the Portfolio Strategy Be Used to Help Managers

question 57

Multiple Choice

How can the portfolio strategy be used to help managers acquire companies that fit well with the rest of their corporate portfolio?

• A)The fewer businesses in which a corporation competes,the smaller its overall chances of failing. 
• B)Risk can be reduced through related diversification-creating or acquiring companies with related core capabilities. 
• C)Invest the profits and cash from mature,slow-growth businesses into newer,faster growing businesses. 
• D)The most significant advantage of the portfolio strategy is the ability to categorize businesses as stars,exclamation points,question marks,and dogs.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight or flight response to stress or emergency situations.

Digestive Activity

The process of breaking down food by mechanical and enzymatic action in the alimentary canal into substances that can be used by the body.

Sexual Arousal

The physiological and psychological state of being stimulated or excited sexually, which can lead to sexual desire and potentially sexual activity.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by speeding up the heart rate, increasing blood pressure, and dilating the pupils, among other actions.